Explosive growth of Internet transactions in banking, stock brokering, shopping and transfer of funds.

Government support for information technology revolution. India is among one of the 12 countries in the world to adopt an e-commerce law.

Weaknesses

Low Internet and telecom penetration - Rural tele-density in India has increased by a negligible 4% from 1.49 phones per 100 people in 2002-2003 to 1.55 phones per person in 2003-2004. While the overall growth in tele-density was 27% for the same period. (Source: DOT Annual Report)

Lack of basic computer literacy in rural areas.

Lack of electricity in rural areas to run computers

Lack of money with villagers to buy computers

Lack of basic infrastructure like absence of credit card in rural sector. Without credit card, making transactions on Internet is not easy.

Slow implementation of Information Technology Act.

Opportunities

The power of Internet - Internet is a means to connect individuals who want to communicate. Hence, with each new adopter, the Internet became more useful to every other individual.

Explosive growth of Telecom and Internet sector in India - 27% increase in overall tele-density (phones per hundred people) from 5.11 to 7.02, in the year 2003-04. Out of 607,491 villages in the country, 522,347 have been provided village public telephones (VPTs). (Source: DOT Annual Report)

Due to saturation of urban markets, there is willingness among corporate to explore rural economies. They are willing to invest in rural infrastructure to exploit rural consumer base.

Prof. C. K. Prahalad¹ argues that people at the bottom of the pyramid have immense entrepreneurial capabilities and buying power

1 C. K. Prahalad is the Harvey C. Fruehauf Professor of Business Administration at the University of Michigan Business School, Ann Arbor. He is also the Founder and Chairman of Praja Inc., a pioneer company in interactive event experiences, based in San Diego, California. He authored bestseller book, Fortune at the Bottom of Pyramid.

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* Contributed by -
Rohit Garg,
Final Year, PGDM,
S. P. Jain Institute of Management & Research, Mumbai.